Supply Chain Management, 5e (Chopra/Meindl) Chapter 1 Understanding the Supply Chain 1.

1 True/False Questions 1) A supply chain includes only the organizations directly involved in supplying components needed for manufacturing. Answer: FA !" #iff: $ Topic: 1.$ The %&'ective of a !upply (hain $) A supply chain consists of all parties involved) directly or indirectly) in fulfilling a customer re*uest. Answer: T+," #iff: $ Topic: 1.$ The %&'ective of a !upply (hain -) A supply chain could &e more accurately descri&ed as a supply networ. or supply we&. Answer: T+," #iff: $ Topic: 1.1 /hat 0s a !upply (hain1 2) The o&'ective of every supply chain is to ma3imize the overall value generated. Answer: T+," #iff: 1 Topic: 1.$ The %&'ective of a !upply (hain 4) The o&'ective of every supply chain is to ma3imize the value generated for the manufacturing component of the supply chain. Answer: FA !" #iff: $ Topic: 1.$ The %&'ective of a !upply (hain 5) "very supply chain must include all 4 stages. Answer: FA !" #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain 8) The cycle view of a supply chain holds that the processes in a supply chain are divided into a series of activities performed at the interface &etween successive stages. Answer: T+," #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain

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=) The cycle view of a supply chain holds that the processes in a supply chain are divided into $ categories depending on whether they are initiated in response to or in anticipation of customer orders. Answer: FA !" #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain >) The push/pull view of a supply chain holds that the processes in a supply chain are divided into $ categories depending on whether they are initiated in response to or in anticipation of customer orders. Answer: T+," #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain 1;) The push/pull view of a supply chain holds that the processes in a supply chain are divided into a series of activities performed at the interface &etween successive stages. Answer: FA !" #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain 11) The o&'ective of the customer arrival process is to ma3imize the conversion of customer arrivals to customer orders. Answer: T+," #iff: $ Topic: 1.$ The %&'ective of a !upply (hain 1$) The o&'ective of the customer arrival process is to ensure that orders are *uic.ly and accurately entered and communicated to other affected supply chain processes. Answer: FA !" #iff: $ Topic: 1.$ The %&'ective of a !upply (hain AA(!?: Analytic !.ills 1-) The o&'ective of customer order entry is to ensure that orders are *uic.ly and accurately entered and communicated to other affected supply chain processes. Answer: T+," #iff: $ Topic: 1.$ The %&'ective of a !upply (hain AA(!?: Analytic !.ills 12) The o&'ective of customer order entry is to maintain a record of product receipt and complete payment. Answer: FA !" #iff: Topic: 1.$ The %&'ective of a !upply (hain AA(!?: Analytic !.ills
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14) The replenishment cycle occurs at the retailer/distri&utor interface. Answer: T+," #iff: Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills 15) The replenishment cycle occurs at the distri&utor/manufacturer interface. Answer: FA !" #iff: Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills 18) The replenishment cycle is initiated when a supermar.et runs out of stoc. of a particular item. Answer: T+," #iff: Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills 1=) The replenishment cycle is initiated when customers load items intended for purchase into their carts. Answer: FA !" #iff: Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills 1>) The manufacturing cycle occurs at the distri&utor/manufacturer interface. Answer: T+," #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills $;) The manufacturing cycle occurs at the manufacturer/supplier interface. Answer: FA !" #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills $1) The production scheduling process in the manufacturing cycle is similar to the order entry process in the replenishment cycle. Answer: T+," #iff: Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills

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$$) The production scheduling process in the manufacturing cycle is similar to the order fulfillment process in the replenishment cycle. Answer: FA !" #iff: Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills $-) The procurement cycle occurs at the manufacturer/supplier interface. Answer: T+," #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills $2) The cycle view of the supply chain is useful when considering operational decisions) &ecause it specifies the roles and responsi&ilities of each mem&er of the supply chain. Answer: T+," #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain $4) The cycle view of the supply chain is useful when considering operational decisions) &ecause it categorizes processes &ased on whether they are initiated in response to or in anticipation of customer orders. Answer: FA !" #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain $5) The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design) &ecause it specifies the roles and responsi&ilities of each mem&er of the supply chain. Answer: FA !" #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills $8) 6ull processes may also &e referred to as speculative processes. Answer: FA !" #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain $=) 6ush processes may also &e referred to as speculative processes. Answer: T+," #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain

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$>) All supply chain activities within a firm &elong to one of three macro processes @ (+A) 0!(A and !+A. Answer: T+," #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain -;) There is a close connection &etween the design and management of supply chain flows and the success of a supply chain. Answer: T+," #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain -1) All stages of an enterprise are involved) either directly or indirectly) in fulfilling a customer re*uest. Answer: T+," #iff: $ Topic: 1.1 /hat 0s a !upply (hain1 -$) A supply chain involves the constant flow of information) product) and funds &etween different stages and is typically static. Answer: FA !" #iff: Topic: 1.1 /hat 0s a !upply (hain1 --) The difference &etween the value of the product and its price remains with the customer as consumer surplus. Answer: T+," #iff: 1 Topic: 1.$ The %&'ective of a !upply (hain

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1.$ Aultiple (hoice Questions 1) /hich of the following is not a stage within a typical supply chain1 A) (ustomers ?) +etailers () /holesalers/#istri&utors #) Aanufacturers ") All of the a&ove are stages within a typical supply chain. Answer: " #iff: 1 Topic: 1.1 /hat 0s a !upply (hain1 $) /hich of the following is not a stage within a typical supply chain1 A) (ustomers ?) +etailers () /holesalers/#istri&utors #) Aerchandisers ") (omponent/+aw material suppliers Answer: # #iff: 1 Topic: 1.1 /hat 0s a !upply (hain1 -) !upply chain profita&ility is A) not correlated to the value generated &y the various stages of the supply chain. ?) the total profit to &e shared across all supply chain stages. () the difference &etween the revenue generated from the customer and the overall cost across the supply chain. #) the total revenue generated &y the distri&utor stage of the supply chain. ") ? and ( only Answer: " #iff: Topic: 1.$ The %&'ective of a !upply (hain AA(!?: Analytic !.ills 2) !uccessful supply chain management re*uires which of the following decision phases1 A) !upply chain strategy/design ?) !upply chain planning () !upply chain operation #) all of the a&ove ") A and ? only Answer: # #iff: $ Topic: 1.$ The %&'ective of a !upply (hain

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4) The decision phases in a supply chain include A) production scheduling. ?) customer relationship management. () supply chain operation. #) supply chain orientation. ") all of the a&ove Answer: ( #iff: $ Topic: 1.2 #ecision 6hases in a !upply (hain 5) The cycle view of a supply chain holds that A) the processes in a supply chain are divided into $ categories. ?) the processes in a supply chain are divided into a series of activities performed at the interface &etween successive stages. () all processes in a supply chain are initiated in response to a customer order. #) all processes in a supply chain are performed in anticipation of customer orders. ") Bone of the a&ove are true. Answer: ? #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain 8) The push/pull view of a supply chain holds that A) the processes in a supply chain are divided into a series of activities performed at the interface &etween successive stages. ?) all processes in a supply chain are initiated in response to a customer order. () all responses in a supply chain are performed in anticipation of customer orders. #) the processes in a supply chain are divided into $ categories depending on whether they are initiated in response to or in anticipation of customer orders. ") Bone of the a&ove are true. Answer: # #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills =) /hich of the following is not a cycle in the supply chain cycle view1 A) Analysis cycle ?) (ustomer order cycle () +eplenishment cycle #) Aanufacturing cycle ") 6rocurement cycle Answer: A #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain

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>) /hich of the following is not a cycle in the supply chain cycle view1 A) (ustomer order cycle ?) +eplenishment cycle () Aanufacturing cycle #) 6rocurement cycle ") All of the a&ove are part of the supply chain cycle view. Answer: " #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain 1;) The customer order cycle occurs at the A) customer/retailer interface. ?) retailer/distri&utor interface. () distri&utor/manufacturer interface. #) manufacturer/supplier interface. ") none of the a&ove Answer: A #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain 11) /hich of the following is not a process in the customer order cycle1 A) (ustomer arrival ?) (ustomer order entry () (ustomer order fulfillment #) (ustomer order receiving ") All are processes in the customer order cycle. Answer: " #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain 1$) (ustomer arrival refers to A) the point in time when the customer has access to choices and ma.es a decision regarding a purchase. ?) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. () the process where product is prepared and sent to the customer. #) the process where the customer receives the product and ta.es ownership. ") none of the a&ove Answer: A #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain

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1-) The o&'ective of the customer arrival process is to A) get the correct orders to customers &y the promised due date at the lowest possi&le cost. ?) maintain a record of product receipt and complete payment. () ma3imize the conversion of customer arrivals to customer orders. #) ensure that orders are *uic.ly and accurately entered and communicated to other affected supply chain processes. ") none of the a&ove Answer: ( #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills 12) (ustomer order entry is A) the point in time when the customer has access to choices and ma.es a decision regarding a purchase. ?) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. () the process where product is prepared and sent to the customer. #) the process where the customer receives the product and ta.es ownership. ") none of the a&ove Answer: ? #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain 14) The o&'ective of customer order entry is to A) get the correct orders to customers &y the promised due date at the lowest possi&le cost. ?) maintain a record of product receipt and complete payment. () ma3imize the conversion of customer arrivals to customer orders. #) ensure that orders are *uic.ly and accurately entered and communicated to other affected supply chain processes. ") none of the a&ove Answer: # #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain 15) (ustomer order fulfillment refers to A) the point in time when the customer has access to choices and ma.es a decision regarding a purchase. ?) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. () the process where product is prepared and sent to the customer. #) the process where the customer receives the product and ta.es ownership. ") none of the a&ove Answer: ( #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain
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18) The o&'ective of customer order fulfillment is to A) get the correct orders to customers &y the promised due date at the lowest possi&le cost. ?) maintain a record of product receipt and complete payment. () ma3imize the conversion of customer arrivals to customer orders. #) ensure that orders are *uic.ly and accurately entered and communicated to other affected supply chain processes. ") none of the a&ove Answer: A #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain 1=) (ustomer order receiving is A) the point in time when the customer has access to choices and ma.es a decision regarding a purchase. ?) the customer informing the retailer of what they want to purchase and the retailer allocates product to the customer. () the process where product is prepared and sent to the customer. #) the process where the customer receives the product and ta.es ownership. ") none of the a&ove Answer: # #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain 1>) The replenishment cycle occurs at the A) customer/retailer interface. ?) retailer/distri&utor interface. () distri&utor/manufacturer interface. #) manufacturer/supplier interface. ") none of the a&ove Answer: ? #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain $;) The processes involved in the replenishment cycle include A) retail order receiving. ?) retail order entry. () retail order trigger. #) retail order fulfillment. ") all of the a&ove Answer: " #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain

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$1) The processes included in the replenishment cycle include all of the following e3cept A) retail order receiving. ?) retail order entry. () retail order trigger. #) retail order fulfillment. ") none of the a&ove Answer: " #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain $$) The processes included in the replenishment cycle include A) order arrival. ?) production scheduling. () retail trigger. #) manufacturing. ") receiving. Answer: ( #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain $-) The replenishment cycle is initiated when A) the customer wal.s into the supermar.et. ?) the customer calls a mail order telemar.eting center. () customers load items intended for purchase into their carts. #) a product is received into stoc. at a store. ") none of the a&ove Answer: " #iff: Topic: 1.4 6rocess 7iews of a !upply (hain $2) The manufacturing cycle occurs at the A) customer/retailer interface. ?) retailer/distri&utor interface. () distri&utor/manufacturer interface. #) manufacturer/supplier interface. ") none of the a&ove Answer: ( #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain

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$4) The processes involved in the manufacturing cycle include A) receiving. ?) manufacturing and shipping. () production scheduling. #) order arrival. ") all of the a&ove Answer: " #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain $5) The processes involved in the manufacturing cycle include A) order trigger. ?) production scheduling. () order fulfillment. #) order entry. ") manufacturing order analysis. Answer: ? #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain $8) The production scheduling process in the manufacturing cycle is similar to the A) order receiving process in the replenishment cycle. ?) order fulfillment process in the replenishment cycle. () order entry process in the replenishment cycle. #) order trigger process in the replenishment cycle. ") none of the a&ove Answer: ( #iff: Topic: 1.4 6rocess 7iews of a !upply (hain $=) The manufacturing and shipping process in the manufacturing cycle is e*uivalent to the A) order receiving process in the replenishment cycle. ?) order fulfillment process in the replenishment cycle. () order entry process in the replenishment cycle. #) order trigger process in the replenishment cycle. ") none of the a&ove Answer: ? #iff: Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills

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$>) The procurement cycle occurs at the A) customer/retailer interface. ?) retailer/distri&utor interface. () distri&utor/manufacturer interface. #) manufacturer/supplier interface. ") none of the a&ove Answer: # #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain -;) The relationship &etween the manufacturer and supplier during the procurement cycle is very similar to the relationship &etween A) customer and retailer. ?) retailer and distri&utor. () distri&utor and manufacturer. #) manufacturer and customer. Answer: ( #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain -1) The cycle view of the supply chain is useful when considering operational decisions) &ecause A) it categorizes processes &ased on whether they are initiated in response to or in anticipation of customer orders. ?) it specifies the roles and responsi&ilities of each mem&er of the supply chain. () processes are identified as either reactive or speculative. #) it focuses on processes that are e3ternal to the firm. ") it focuses on processes that are internal to the firm. Answer: ? #iff: Topic: 1.4 6rocess 7iews of a !upply (hain -$) The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design) &ecause A) it categorizes processes &ased on whether they are initiated in response to or in anticipation of customer orders. ?) it specifies the roles and responsi&ilities of each mem&er of the supply chain. () it clearly defines the processes involved and the owners of each process. #) it focuses on processes that are e3ternal to the firm. ") it focuses on processes that are internal to the firm. Answer: A #iff: Topic: 1.4 6rocess 7iews of a !upply (hain

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--) /hich of the following statements a&out pull processes is accurate1 A) Aay also &e referred to as speculative processes. ?) "3ecution is initiated in anticipation of customer orders. () At the time of e3ecution) demand must &e forecast. #) Aay also &e referred to as reactive processes. ") Bone of the a&ove are accurate. Answer: # #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain -2) /hich of the following is not an accurate statement a&out pull processes1 A) Aay also &e referred to as speculative processes. ?) "3ecution is initiated in response to a customer order. () At the time of e3ecution) demand is .nown with certainty. #) Aay also &e referred to as reactive processes. ") All of the a&ove are accurate. Answer: A #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills -4) /hich of the following statements a&out push processes is accurate1 A) Aay also &e referred to as speculative processes. ?) "3ecution is initiated in response to customer orders. () At the time of e3ecution) demand is .nown with certainty. #) Aay also &e referred to as reactive processes. ") Bone of the a&ove are accurate. Answer: A #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain -5) /hich of the following is not an accurate statement a&out push processes1 A) Aay also &e referred to as speculative processes. ?) "3ecution is initiated in anticipation of customer orders. () At the time of e3ecution) demand must &e forecast. #) Aay also &e referred to as reactive processes. ") All of the a&ove are accurate. Answer: # #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain

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-8) !upply chain macro processes include which of the following1 A) (ustomer +elationship Aanagement C(+A) ?) 0nternal !upply (hain Aanagement C0!(A) () !upplier +elationship Aanagement C!+A) #) all of the a&ove ") none of the a&ove Answer: # #iff: 1 Topic: 1.4 6rocess 7iews of a !upply (hain -=) !upply chain macro processes include which of the following1 A) 0nternal +elationship Aanagement C0+A) ?) (ustomer +elationship Aanagement C(+A) () "3ternal +elationship Aanagement C"+A) #) !upply (hain +elationship Aanagement C!(+A) ") none of the a&ove Answer: ? #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain ->) !upply chain macro processes include which of the following1 A) 0nternal +elationship Aanagement C0+A) ?) "3ternal +elationship Aanagement C"+A) () !upplier +elationship Aanagement C!+A) #) !upply (hain +elationship Aanagement C!(+A) ") none of the a&ove Answer: ( #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain 2;) Activities involved in the (ustomer +elationship Aanagement C(+A) macro process include A) planning of internal production and storage. ?) order fulfillment. () mar.eting. #) supply planning. ") demand planning. Answer: ( #iff: Topic: 1.4 6rocess 7iews of a !upply (hain

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21) Activities involved in the (ustomer +elationship Aanagement C(+A) macro process include all of the following e3cept A) mar.eting. ?) sales. () order management. #) call center management. ") All of the a&ove are activities of (+A. Answer: " #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: Analytic !.ills 2$) Activities involved in the 0nternal !upply (hain Aanagement C0!(A) macro process include A) mar.eting. ?) order fulfillment. () sales. #) order management. ") call center management. Answer: ? #iff: Topic: 1.4 6rocess 7iews of a !upply (hain 2-) Activities involved in the 0nternal !upply (hain Aanagement C0!(A) macro process include all of the following e3cept A) planning of internal production and storage. ?) order fulfillment. () supply planning. #) order management. Answer: # #iff: Topic: 1.4 6rocess 7iews of a !upply (hain 22) Activities involved in the !upplier +elationship Aanagement C!+A) macro process include A) planning of internal production and storage. ?) order fulfillment. () supplier evaluation and selection. #) order management. Answer: ( #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain

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24) Activities involved in the !upplier +elationship Aanagement C!+A) macro process include all of the following e3cept A) negotiation of supply terms. ?) design colla&oration. () demand planning. #) supplier evaluation and selection. ") supply colla&oration. Answer: ( #iff: Topic: 1.4 6rocess 7iews of a !upply (hain 25) The phenomenal success of 89"leven Dapan is attri&uted to A) &eing in the right place at the right time. ?) its supply chain design and management a&ility. () having >;;; locations. #) serving fresh food. ") none of the a&ove Answer: ? #iff: $ Topic: 1.- The 0mportance of !upply (hain #ecisions 28) A .ey issue facing Toyota is A) developing an internet mar.eting system. ?) whether to specialize in a particular mar.et. () design of its glo&al production and distri&ution networ.. #) how to implement model changes. ") all of the a&ove Answer: ( #iff: Topic: 1.- The 0mportance of !upply (hain #ecisions 2=) /hen a customer purchases a &oo. online from a company such as Amazon) which of the following is B%T part of the typical supply chain operations1 A) The customer ?) AmazonEs we& site () AmazonEs &oo. supplier #) AmazonEs accounting department Answer: # #iff: 1 Topic: 1.1 /hat 0s a !upply (hain1 AA(!?: Analytic !.ills

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2>) A supply chain has many stages. 0t would B%T typically involve this stage. A) (ustomerEs trip to retailer ?) +etailers () Aanufacturers #) +aw materials suppliers Answer: A #iff: Topic: 1.1 /hat 0s a !upply (hain1 AA(!?: Analytic !.ills 4;) "ach stage in a supply chain is connected through the flow of products) information) and funds. These flows often occur in &oth directions and is usually managed &y A) pricing department. ?) one of the stages. () upper management. #) engineering department. Answer: ? #iff: $ Topic: 1.1 /hat 0s a !upply (hain1 41) !upply chain surplus involves what two parts1 A) Aanufacturing cost and selling price ?) (ustomer value and supply chain cost () (ustomer value and high *uality products #) +elia&le transportation and supply chain cost Answer: ? #iff: Topic: 1.$ The %&'ective of a !upply (hain 4$) For any supply chain) the source of revenue is generated &y A) efficient operations. ?) information flows. () the customer. #) product flows. Answer: ( #iff: Topic: 1.$ The %&'ective of a !upply (hain AA(!?: Analytic !.ills

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4-) /e&van designed a supply chain with large warehouses in several ma'or cities in the ,nited !tates) from which groceries were delivered to customer homes. They failed partly &ecause of A) low demand for their service. ?) slow inventory turnover compared to industry averages. () higher la&or costs for pic.ing orders. #) poor *uality products. Answer: ( #iff: $ Topic: 1.- The 0mportance of !upply (hain #ecisions AA(!?: Analytic !.ills 42) !uccessful supply chain management re*uires many decisions relating to the flow of information) product) and funds. These decisions fall into three categories or phases. /hich of the following is B%T one of these categories1 A) !upply (hain %peration ?) !upply (hain 6lanning () !upply (hain !trategy and #esign #) !upply (hain Alliances Answer: # #iff: 1 Topic: 1.2 #ecision 6hases in a !upply (hain

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1.- "ssay Questions 1) "3plain the - decision phases Ccategories) that must &e made in a successful supply chain. Answer: The - decision phases that occur within a supply chain are supply chain strategy Cor design)) supply chain planning and supply chain operation. #ecisions relate to the flow of information) product and funds. The difference &etween categories depends upon the fre*uency of each decision and the time frame over which it has an impact. #uring the supply chain strategy phase) a company determines what the chainFs configurations will &e) how resources will &e allocated) and what processes each stage will perform. This will esta&lish the structure of the supply chain for several years. !upply chain planning deals with decisions with a time frame from - months up to a year. The planning phase must wor. within the constraints esta&lished in the strategy phase. 6lanning decisions include which mar.ets to supply from which locations) su&contracting of manufacturing) inventory policies and timing and size of mar.eting promotions. The supply chain operation phase operates on a wee.ly or daily time horizon and deals with decisions concerning individual customer orders. #iff: Topic: 1.2 #ecision 6hases in a !upply (hain $) #escri&e the cycle view of the processes within a supply chain. Answer: The cycle view divides the supply chain into a series of 2 cycles &etween the 4 different stages of a supply chain. The cycles are the customer order cycle) replenishment cycle) manufacturing cycle and procurement cycle. The customer order cycle occurs at the customer/retailer interface and includes all processes directly involved in receiving and filling the customer. The replenishment cycle occurs at the retailer/distri&utor interface and includes all processes involved in replenishing retailer inventory. The manufacturing cycle typically occurs at the distri&utor/manufacturer Cor retailer/manufacturer) interface and includes all processes involved in replenishing distri&utor Cor retailer) inventory. The procurement cycle occurs at the manufacturer/supplier interface and includes all processes necessary to ensure that the materials are availa&le for manufacturing according to schedule. #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain -) "3plain the push/pull view of the processes within a supply chain. Answer: The push/pull view of the supply chain divides supply chain processes into two categories &ased on whether they are e3ecuted in response to a customer order or in anticipation of customer orders. 6ull processes are initiated in response to a customer order. 6ush processes are initiated and performed in anticipation of customer orders. The push/pull &oundary separates push processes from pull processes. This view is very useful when considering strategic decisions relating to supply chain design) &ecause it forces a more glo&al consideration of supply chain processes as they relate to the customer. #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain

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2) "3plain the three macro processes within a supply chain. Answer: All processes within a supply chain can &e classified into three macro processes which are (ustomer +elationship Aanagement C(+A)) 0nternal !upply (hain Aanagement C0!(A)) and !upplier +elationship Aanagement C!+A). (ustomer +elationship Aanagement C(+A) includes all processes that focus on the interface &etween the firm and its customers such as mar.eting) sales) call center management and order management. 0nternal !upply (hain Aanagement C0!(A) includes all processes that are internal to the firm such as finalization of demand and supply plans) preparation of inventory management policies) order fulfillment and planning of capacity. !upplier +elationship Aanagement C!+A) includes all processes that focus on the interface &etween a firm and its suppliers such as evaluation and selection of suppliers) negotiation of supply terms and communication regarding new products and orders. #iff: $ Topic: 1.4 6rocess 7iews of a !upply (hain 4) "3plain why supply chain flows are important. Answer: !upply chain flows are important) &ecause there is a close connection &etween the design and management of supply chain flows Cproduct) information) and cash) and the success of a supply chain. The success of many companies can &e directly traced to the design and management of an appropriate supply chain. The failure of many &usinesses can &e lin.ed directly to their ina&ility to effectively design and manage supply chain flows. #iff: $ Topic: 1.- The 0mportance of !upply (hain #ecisions 5) #iscuss the differences of push and pull supply chain processes. Answer: 6rocesses in a supply chain fall into one of two categories depending on the timing of their e3ecution relative to end customer demand. /ith pull processes) e3ecution is initiated in response to a customer order. /ith push processes) e3ecution is initiated in anticipation of customer orders &ased on a forecast. 6ull processes may also &e referred to as reactive processes &ecause they react to customer demand. 6ush processes may also &e referred to as speculative processes &ecause they respond to speculated Cor forecasted) rather than actual demand. The push/pull boundary in a supply chain separates push processes from pull processes . 6ush processes operate in an uncertain environment &ecause customer demand is not yet .nown. 6ull processes operate in an environment in which customer demand is .nown. They are) however) often constrained &y inventory and capacity decisions that were made in the push phase. #iff: Topic: 1.4 6rocess 7iews of a !upply (hain AA(!?: +eflective Thin.ing !.ills

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